Boston Market lost its bid to US Foods as business problems mounted

Boston Market lost its bid to US Foods as business problems mounted

Boston market there is was in crisis has been going on for several years, and last week one of his biggest legal challenges finally came to an end. A the judge decided the chicken rotisserie chain will pay US Foods $11.9 million after the distributor filed a lawsuit against Boston Market last July over unpaid bills.

Boston Market’s legal problems

The Boston market is under legal fire from almost every possible direction, but its battle with US Foods is a major blow. The latter claimed that the restaurant failed to pay for shipments until 2022, and the bill continued to fall behind over the past year, even after Boston Market created a schedule to pay the supplier.

The judge ruled in favor of US Foods because the company “willfully defaulted on its obligations to the court.” US Foods filed a lawsuit against Boston Market in July of last year, but the final judgment states that Boston Market owner Jay Pandya did not accept the petition until September. After admitting to the lawsuit, Pandya continued to miss deadlines to respond to it.

“Pandya has deliberately evaded service and failure of all the respondents to attend this trial on time was deliberate and without any reasonable excuse for the delay,” the judgment read in part.

Even after this decision, US Foods is not giving up on Boston Market or Pandya. There is a distributor from February 2024 submitted a separate application to the courts for additional debt, late fees, accrued interest and attorney’s fees. This supplemental filing includes five counts against the Boston market, totaling approximately $30.7 million.

How Boston Market Copes With Legal Challenges

Desperate times call for desperate measures, and Boston Market is in no position to turn down new franchisees. Boston Market recently revamped its franchising process to pull itself out of the deep financial crisis it’s been in. it is possible for almost everyone open a restaurant location.

Under the new system, those who want to open a position in the Boston market can do so “WITHOUT ANY PURCHASE REQUIREMENT”. brand announcement. Interested parties simply need to fill out a questionnaire that focuses more on the applicant’s ambitions than on practical work experience. The program, called Boston Market Connect (BMC), also focuses on opening “non-traditional locations” such as “your restaurant, deli, gas station or any suitable establishment.” Basically, it sounds like the company will take whatever it can get.

In addition to opening up as many franchise opportunities as possible, the chain also announced that it will release a new menu item every six weeks. Each of the new dishes is inspired by the food of other countries and is described as a “celebration of history”. [that] It serves as a testament to Boston Market’s continued commitment to shaping the future of dining experiences.

Brand closed the most places Outside of any chain restaurant in 2022. Restaurant Business informed that Boston Market closed 41 units by the end of that year, 12% of its total footprint. By August 2023, the chain had closed 50 additional units.

The $11.9 million hit is just one headache for the once-mighty rotisserie chain. Lowering the barrier to entry for new franchise locations is an interesting strategy, but it may be little more than a band-aid approach. Time will tell, but it may be time to take the chickens off the spit.

This article originally appeared on The Takeout.

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